Tuesday, June 28, 2022

Labor History and the Supreme Court Abortion Ruling

 

Labor History and the Supreme Court Abortion Ruling

I would like to suggest a connection between labor history and the recent Supreme Court decision concerning abortion rights; this being a labor blog. Labor history has a long record of vigilante violence and authoritarian misconduct going back into the 19th century. Throughout labor history mob violence directed at strikers and picketers seldom occurred as spontaneous response to the events of a strike. Corporate interests with the economic power to assert authority took repeated steps to organize and arm vigilante forces to break strikes, and their recruits recognized their recruiters had the political power to protect them from criminal prosecution. Corporate officials acted with confidence and impunity to assert the authoritarian power of a police state while avoiding any compromise that democracy might generate.

For at least fifty years abortion opponents have demanded, without a hint of compromise, that a fertilized egg at the time of conception will be the same thing as an eight or nine month fetus about to be born. Such a view can only prevail in a police state or a country like the United States with a paralyzed Senate, a “we do as we please” majority on a Supreme Court and a Republican Party determined to corrupt free elections.

It was true in 1973 as it is true in 2022 that the Constitution has nothing to say about abortion, but the Senate and the Congress, then as now, can be blocked and paralyzed by minority rule. The few who have bothered to read the Roe v. Wade opinion know that Justice Blackmun wrote a long historical discussion of the pros and cons of abortion before coming to a compromise ruling in between the extremes of fanatics. Justice Blackmun did what democracy should be able to do, and the Senate and the American Constitution cannot do: compromise. The U.S. Constitution is obsolete and desperately needs to be amended or replaced. The current episode should make clear it has defects capable of bringing down constitutional government, not just majority rule.

On January 6, 2021, Trump supplied the authority for his base to attack the capital and extensive video footage establishes they acted with confidence and impunity as a violent band of hooligans expecting to be protected by Trump as part of their devotion to his authoritarian ways. The Supreme Court intends and expects their rulings on guns and military assault weapons, such as the recent move against gun safety in New York, will be used by armed vigilantes as an aid to enforce their decision on abortion, and other decisions to come, the same as labor history records.

The Supreme Court majority in the 1857 Dred Scott decision expected to resolve the polarized politics of slavery, but all they did was debase themselves, the Court and push the country to a violent civil war. Now, another Court majority expects to end the abortion fight with an authoritarian political ruling. There is a difference though. Then Supreme Court Chief Justice Roger Taney discussed their upcoming ruling with President James Buchanan. They were both foolish enough to believe the Supreme Court had the prestige to resolve what political compromise could not do.  

Not now. Now they have eliminated the Roe v. Wage compromise of 1973 and made the political decision to encourage and promote civil warfare as leverage to get their way. In 2022, these police state justices know exactly what they’re doing, they just don’t care.

Thursday, June 16, 2022

Labor Line

June 2022___________________________________ 

Labor line has job news and commentary with a one stop short cut for America’s job markets and job related data including the latest data from the Bureau of Labor Statistics. 

 This month's job and employment summary data are below. This month's inflation data is below

 The Establishment Job Report and Establishment Job Details for data released June 3, 2022. American Job Market The Chronicle 

 Current Job and Employment Data 

Jobs

Total Non-Farm Establishment Jobs up 390,000 to 151,682,000

Total Private Jobs up 333,000 to 129,418,000

Total Government Employment up 57,000 to 22,264,000 Note 

Civilian Non-Institutional Population up 120,000 to 263,679,000

Civilian Labor Force up 330,000 to 164,376,000

Employed up 321,000 to 158,426,000 

Employed Men up 129,000 to 84,218,000

Employed Women up 129,000 to 74,208,000

Unemployed up 9,000 to 5,950,000

Not in the Labor Force down 211,000 to 99,302,000


Unemployment Rate stayed the same at 3.6% or 5,950/164,376

Labor Force Participation Rate increased by .1% to 62.3%, or 164,376/263,679

Prices and inflation measured by the Consumer Price Index (CPI) for all Urban Consumers was up by a monthly average of 1.2 percent for 2020. 

The CPI June report for the 12 months ending with May shows the 

CPI for All Items was up 8.6% 

CPI for Food and Beverages was up 9.7% 

CPI for Housing was up 6.9% 

CPI for Apparel was up 5.0% 

CPI for Transportation including gasoline was up 19.4% 

CPI for Medical Care was up 3.7% 

CPI for Recreation was up 4.5% 

CPI for Education was up 2.5% 

CPI for Communication was down .2% 

This Month’s Establishment Jobs Press Report

Another Good Month

The Bureau of Labor Statistics published its June report for jobs in May. The civilian labor force was up 330 thousand, almost the same as the increase in employment, 321 thousand; the remaining 9 thousand joined the unemployed. About two-thirds of the increase in the labor force came from people reentering the labor force along with a typical increase in the adult population. The increase in the unemployed just offset the increase in the labor force to leave the unemployment rate unchanged at 3.6 percent for the third month The participation rate went up .1 percent to 62.3 percent, after last month’s decrease.

The seasonally adjusted total of establishment employment was up 390 thousand for May. The increase was 274 thousand more jobs in the private service sector combined with a 59 thousand increase in jobs from goods production. The total of 333 thousand jobs gained in the private sector combined with an increase of 57 thousand government service jobs accounts for the total increase.

Goods production jobs were up 57 thousand jobs with gains in all three subsectors. Natural resources were up 5 thousand jobs; construction added 36 thousand. Specialty trade contractors added 17.4 thousand jobs with another 11.3 thousand more jobs in heavy and engineering construction. Manufacturing added 18 thousand jobs with durable goods up 11 thousand jobs including 7.1 thousand jobs in fabricated metal products and 4.4 thousand jobs in computer and electronic product manufacturing. Transportation equipment lost jobs for the month. Nondurable goods jobs increased 7 thousand with the biggest gains in food processing, up 6.1 thousand jobs and chemical manufacturing up 3.7 thousand jobs offset with other small job losses.

Government service employment was up 57 thousand jobs. Federal government employment was up 5 thousand jobs while state government added 36 thousand jobs and local government another 16 thousand. Most of the jobs came in education. Local public schools added 14.4 thousand new jobs and by an increase of 36.3 thousand jobs in state government education. Public education had a net increase of 50.7 thousand jobs combined with 32.5 thousand new jobs in private sector education employment generating 83.2 thousand more education jobs.

Leisure and hospitality services took first place for private sector jobs with 84 thousand new jobs, up slightly from last month. Arts, entertainment and recreation added 16.2 thousand jobs, also up from last month. Performing arts and spectator sports had 10.2 thousand new jobs but just 2.6 thousand more in amusements, gambling and recreation. Restaurants had over half the hospitality job gains with 46.1 thousand new jobs. Accommodation picked up 21.4 thousand jobs, a third good month for accommodations. Leisure and hospitality at 15.638 million jobs which remains 1.277 million jobs less than its maximum employment which came February 2020.

Professional and business services added 75 thousand more jobs, more than last month. The professional and technical services sub sector gained 48.2 thousand of the jobs while management of companies added 6.6 thousand jobs. Administrative and support services including waste management had a modest increase of 20.1 thousand jobs. Among professional and technical services, accounting and bookkeeping services added 15.6 thousand jobs; computer design and related services another 4.2 thousand jobs and management consulting added another 6.8 thousand jobs. Gains in employment services of 21.2 thousand jobs dominated modest administrative service job gains.

Health care had another slow month adding just 42 thousand jobs, 1 thousand more than last month. Ambulatory care had only 6.4 thousand of the jobs. Hospitals added 16.3 thousand jobs, much larger than a normal month; nursing and residential care facilities added another 5.6 thousand. Social assistance services had 13.8 thousand new jobs with 13.0 thousand of the jobs in individual and family services, up from last month. This month the annual health care growth stood at 1.79 percent compared to a 15 year growth rate since the pandemic of just 1.80 percent, but still down from pre pandemic rates.

Trade, transportation and utilities added a net of a thousand jobs after last month with over a hundred thousand trade, transportation jobs. Wholesale trade was up 14.1 thousand jobs offset with a 60.1 thousand job loss of retail jobs. Transportation added 47 thousand jobs, a little down from last month. Truck transportation did well in modal transportation with 13.3 thousand more jobs; warehousing and storage added another 17.7 thousand jobs. Utilities added 500 thousand jobs.

Information services had 16 thousand new jobs up from last month. Motion picture and sound recordings had the biggest gains 10.6 thousand of the jobs after last month’s job loss. Data processing and hosting services added another 5.2 thousand new jobs. Financial Activities added 8 thousand jobs, way down from last month. Finance and insurance had job losses offset by 14 thousand more jobs in real estate and the rental and leasing sub sector.

The category, other jobs, had a good month with 16 thousand new jobs including job gains in all three subsectors; repair and maintenance services added 5.9 thousand jobs; personal and laundry services another 6.8 thousand jobs; non-profit membership associations up 4.0 thousand more.

The economy added 390 thousand jobs, down just 38 thousand from last month, but still another good month for jobs. The total for establishment employment in May 2022 is 151.682 million generating an annual growth rate of 3.09 percent, twice population growth and a good rate of increase. This month’s job total is 6.54 million above May a year ago but 18.688 million jobs above May two years ago.

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May Details 

Non Farm Total +390

The Bureau of Labor Statistics (BLS) reported Non-Farm employment for establishments increased from April by 390 thousand jobs for a(n) May total of 151.682 million. (Note 1 below) An increase of 390 thousand each month for the next 12 months represents an annual growth rate of +3.09% The annual growth rate from a year ago beginning May 2021 was +4.51%; the average annual growth rate from 5 years ago beginning May 2017 was +.72%; from 15 years ago beginning May 2007 it was +.63%. America needs growth around 1.5 percent a year to keep itself employed.

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Sector breakdown for 12 Sectors in 000’s of jobs 

1. Natural Resources +5

Natural Resources jobs including logging and mining were up 5 thousand jobs from April with 618 thousand jobs in May. An increase of 5 thousand jobs each month for the next 12 months would be an annual growth rate of +9.79 percent.  Natural resource jobs are up 58 thousand for the 12 months just ended. Jobs in 2000 averaged around 600 thousand with little prospect for growth.  This is the smallest of 12 major sectors of the economy with .4 percent of establishment jobs.

2. Construction +36

Construction jobs were up 36 thousand from April with 7.664 million jobs in May. An increase of 36 thousand jobs each month for the next 12 months would be an annual growth rate of +5.66 percent.  Construction jobs are up 283 thousand for the 12 months just ended. The growth rate for the last 5 years is +2.05%. Construction jobs rank 9th among the 12 sectors with 5.1 percent of non-farm employment.

3. Manufacturing +18

Manufacturing jobs were up 18 thousand from April with 12.768 million jobs in May. An increase of 18 thousand jobs each month for the next 12 months would be an annual growth rate of +1.69 percent.  Manufacturing jobs were up for the last 12 months by 500 thousand. The growth rate for the last 5 years is +.56%; for the last 15 years by -.58%. In 1994, manufacturing ranks 6th among 12 major sectors in the economy with 8.4 percent of establishment jobs.

4. Trade, Transportation & Utility +1

Trade, both wholesale and retail, transportation and utility employment were up 1 thousand from April with 28.651 million jobs in May. An increase of 1 thousand jobs each month for the next 12 months would be an annual growth rate of +.04 percent. Jobs are up by 1.113 million for the last 12 months. Growth rates for the last 5 years are +.87 percent. Jobs in these sectors rank first as the biggest sectors with combined employment of 18.9 percent of total establishment employment.

5. Information Services +16

Information Services jobs were up 16 thousand from April with 2.967 million jobs in May. An increase of 16 thousand jobs each month for the next 12 months would be an annual growth rate of +6.51 percent. (Note 2 below)  Jobs are up by 164 thousand for the last 12 months. Information jobs reached 3.7 million at the end of 2000, but started dropping, reaching 3 million by 2004 and has slowly come back to 2.7 million in the last decade. Information Services is a small sector ranking 11th of 12 with 1.9 percent of establishment jobs.

6. Financial Activities +8

Financial Activities jobs were up 8 thousand from April at 8.948 million in May. An increase of 8 thousand each month for the next 12 months would be an annual growth rate of +1.07 percent. Jobs are up 201 thousand for the last 12 months.  (Note 3 below) This sector also includes real estate as well as real estate lending. The long term growth rates are now at a 5 year growth rate of +1.20 percent, and a 15 year growth rate of +.45 percent. Financial activities rank 8th of 12 with 5.9 percent of establishment jobs.

7. Business and Professional Services +75

Business and Professional Service jobs went up 75 thousand from April to 22.214 million in May. An increase of 75 thousand each month for the next 12 months would be an annual growth rate of +4.07 percent. Jobs are up 1.191 million for the last 12 months. Note 4 The annual growth rate for the last 5 years was +1.71 percent. It ranks as 2nd among the 12 sectors now. It was 2nd in May 1993, when manufacturing was bigger and second rank now with 14.7 percent of establishment employment. 

8. Education including public and private +83

Education jobs went up 83 thousand jobs from April at 14.192 million in May. An increase of 83 thousand jobs each month for the next 12 months would be an annual growth rate of +7.08 percent.. These include public and private education. Jobs are up 556 thousand for the last 12 months. (note 5) The 15 year growth rate equals +.47 percent, slower than the national average. Education ranks 4th among 12 sectors with 9.3 percent of establishment jobs

9. Health Care +42

Health care jobs were up 42 thousand from April to 20.456 million in May. An increase of 42 thousand each month for the next 12 months would be an annual growth rate of +2.47 percent. Jobs are up 387 thousand for the last 12 months. (note 6) The current month has not recovered health care job growth. The health care long term 15 year growth rate has dropped from +2.31 percent to +1.80 percent compared to +1.79 percent for this month’s jobs. Health care ranks 3rd of 12 with 13.5 percent of establishment jobs.

10. Leisure and hospitality +84

Leisure and hospitality jobs were up 84 thousand from April to 15.638 million in May.  (note 7) An increase of 84 thousand each month for the next 12 months would be an annual growth rate of +6.48 percent. Jobs are up 1.808 million for the last 12 months. More than 80 percent of leisure and hospitality are accommodations and restaurants assuring that most of the new jobs are in restaurants. Leisure and hospitality ranks 7th of 12 with 10.3 percent of establishment jobs. It moved up to 7th from 4th in the pandemic decline.

11. Other +16

Other Service jobs, which include repair, maintenance, personal services and non-profit organizations went up 16 thousand from April to 5.692 million in May. An increase of 16 thousand each month for the next 12 months would be an annual growth rate of +3.38 percent. Jobs are up 297 thousand for the last 12 months. (note 8) Other services had +.23 percent growth for the last 15 years. These sectors rank 10th of 12 with 3.8 percent of total non-farm establishment jobs.

12. Government, excluding education +6

Government service employment went up 6 thousand from April at 11.874 million jobs in May. An increase of 6 thousand each month for the next 12 months would be an annual growth rate of +.57 percent. Jobs are down 16 thousand for the last 12 months.  (note 9) Government jobs excluding education tend to increase slowly with a 15 year growth rate of -.01 percent. Government, excluding education, ranks 7th of 12 with 8.0 percent of total non-farm establishment jobs.

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Sector Notes__________________________

(1) The total cited above is non-farm establishment employment that counts jobs and not people. If one person has two jobs then two jobs are counted. It excludes agricultural employment and the self employed. Out of a total of people employed agricultural employment typically has about 1.5 percent, the self employed about 6.8 percent, the rest make up wage and salary employment. Jobs and people employed are close to the same, but not identical numbers because jobs are not the same as people employed: some hold two jobs. Remember all these totals are jobs. back

(2) Information Services is part of the new North American Industry Classification System(NAICS). It includes firms or establishments in publishing, motion picture & sound recording, broadcasting, Internet publishing and broadcasting, telecommunications, ISPs, web search portals, data processing, libraries, archives and a few others.back

(3) Financial Activities includes deposit and non-deposit credit firms, most of which are still known as banks, savings and loan and credit unions, but also real estate firms and general and commercial rental and leasing.back

(4) Business and Professional services includes the professional areas such as legal services, architecture, engineering, computing, advertising and supporting services including office services, facilities support, services to buildings, security services, employment agencies and so on.back

(5) Education includes private and public education. Therefore education job totals include public schools and colleges as well as private schools and colleges. back

(6) Health care includes ambulatory care, private hospitals, nursing and residential care, and social services including child care. back

(7) Leisure and hospitality has establishment with arts, entertainment and recreation which has performing arts, spectator sports, gambling, fitness centers and others, which are the leisure part. The hospitality part has accommodations, motels, hotels, RV parks, and full service and fast food restaurants. back

(8) Other is a smorgasbord of repair and maintenance services, especially car repair, personal services and non-profit services of organizations like foundations, social advocacy and civic groups, and business, professional, labor unions, political groups and political parties. back

(9) Government job totals include federal, state, and local government administrative work but without education jobs. back

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Notes

Jobs are not the same as employment because jobs are counted once but one person could have two jobs adding one to employment but two to jobs. Also the employment numbers include agricultural workers, the self employed, unpaid family workers, household workers and those on unpaid leave. Jobs are establishment jobs and non-other. back

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Saturday, May 7, 2022

Taxing Dividends or Not

Taxing Dividends or Not

Recall the George W Bush era 2003 tax cuts came with a ten year expiration date, a necessary concession to get the additional votes for passage by Congress. If the expiration date passed without a legislative renewal, then the Personal Income Tax reverted to what it was right before the Bush tax cuts. Negotiations for renewal and adjustments began as the 2013 deadline approached, which created a position of enormous advantage for President Obama. All he had to do was let the thing expire and keep talking if he could not get the changes he wanted. If he had done that, one especially disgusting feature of the Bush tax cuts would have expired with it. The especially disgusting feature favored income earned from corporate dividends with lower tax rates that did not, and still do not, apply to wage income, or social security income or pension income.

A dollar of personal income provides a dollar of spending power without regard to its source or label. Taxing dividends less than wages has no financial advantage funding government, but it cuts tax rates in favor of those with stock portfolios rather the jobs with wages. It makes the federal personal income tax less progressive, or regressive – tax rates fall as incomes rise - and means those with the same income will pay different taxes depending on how they earn their income rather than how much.

In 2003, the first year of the Bush Tax cuts, the tax rate on general dividend income was capped at 15 percent. A worksheet – Qualified Dividends and Capital Gains Tax Worksheet-Line 41 - was added to the Form 1040 instructions with an algorithm that separated dividend income from other taxable income. Taxable income without the dividends was taxed at rates starting at 10 percent and rising to 35 percent for taxable income over $311,950, while dividend income was taxed at 15 percent, or 20 percent lower than the 35 percent applied to the highest personal income. Since the median family income in 2003 was $43,318, the 20 percent rate reduction applied for those with taxable income over $311,950, which means a large savings for the highest incomes. Many years of annual tax savings reinvested in the stock market year by year might be a tidy little nest egg. However, there is no reason to speculate how much it might be. It is not difficult to generate dollar amounts from the tax rate schedules and stock market returns for the years 2003 to 2022.

Suppose a married couple both in the teaching profession in 2003 had a typical median salaries providing a joint taxable income of $110,000.  In the first year a married couple with jobs paying a joint taxable income from wages of $110,000 would pay a federal personal income tax of $21,120. If our married couple had $10,000 of their $110,000 income as dividends their tax bill would drop $1,000 to $20,120 because their marginal tax rate dropped from 25 percent to 15 percent. In 2003 that $1,000 would have purchased just over 39 shares of Microsoft Corporation stock at $25.08 a share, the price on April 1, 2004. On April 1, 2022 the 39 shares had a value of $12,024.09. (1)

 

Since the tax cut on dividends continues to the present, suppose tax savings on $10,000 of dividends as part of a taxable income of $110,000 continued to be $1,000 a year for 15 years until 2017. For the remaining years after the Trump tax cuts the 15 percent marginal rate dropped to 12 percent leaving the tax savings at $700 a year. If our hypothetical couple continued purchasing shares each April they would add to their 39 shares from 2003. By doing so until April 2022 they would own 497 shares of Microsoft stock worth $153,397.83.

 

Suppose a married couple both in a professional occupation like law, engineering or medicine where median salaries of $125,000 in 2003 provide a joint taxable income of $125,000. In the first tax cut year 2003 a married couple with a joint taxable income from wages of $250,000 would pay a federal personal income tax of $63,945.17. If $25,000 of the $220,000 was dividend income the personal income tax for 2003 drops by $4,500.00 to $59,445.17. The $25,000 of dividend income presumes a stock portfolio of $1,000,000 and a 2.5 percent yield on dividends would be reasonable for a professional couple of forty years of age. If, as above, our wealthier couple continues to reinvest tax savings on $25,000 of dividend income year by year until 2021 they would own 2,186 shares of Microsoft stock worth $674,084.00: funds they would not have from wage income alone.

 

In 2003, the 2002 tax rates were lowered for personal income above $46,700, but excluding dividend income. The $46,700 was a little above the median family income at that time. The top rate was lowered from 38.6 percent to 35 percent, where it stayed until 2013. The top rate was 39.6 percent from 2013 until 2017 when the Trump tax cuts cut it to 37 percent. These rates apply to those with high taxable incomes: $311,950 and higher in 2003 up to $628,300 and higher in 2021. It is for these incomes that the tax savings for dividend income over such a long period as 2003 to 2022 can become enormous.

 

Married couples with personal income ranging above $628,300 can be expected to have a stock portfolio in six or seven figures. Interest rates on savings, CD’s and bonds at historically lows and the steady rise in the Standard and Poors or Dow Jones industrial index, guarantees the well-to-do were putting lots of financial capital into stocks. Dividend income during these years provided a secure and steady return even without considering capital gains, also taxed at the same favorable rate as dividends.

Suppose we figure the tax savings from taxable income of $700,000 and $100,000 of dividend income by assuming a $4,000,000 portfolio at 2.5 percent dividend and ignores any capital gains. The savings in the first year are $20,000 but dips below $17,000 in the later years as marginal rates dropped in the Trump years. Again if we have our hypothetical couple continue purchasing shares with their annual tax savings each April until 2022 they would own 9,871 shares of Microsoft stock worth $3,043,486.45.

Suppose though we talk about the very rich and start them out in 2003 with $2,500,000 in taxable income and $1,500,000 in dividend income. If all the $2.5 million of taxable income paid tax at the same tax rates as wages the personal income tax would be $850,206.50, but with $1,500,000 as dividends the personal income tax drops to $550,206.50, a savings of $300,000 dollars given the tax rate for dividends drops from 35 percent to 15 percent. In 2003 that $300,000 would have purchased just over 11,961 shares of Microsoft Corporation stock at $25.08 a share, the price on April 1, 2004. On April 1, 2021 the 11,961 shares had a value of $3,687,695.91. Again if we have our hypothetical couple continue purchasing shares with their annual dividend tax savings each April until 2021 they would own 148,018 shares of Microsoft stock worth $45,635,408.08.

Dividend tax savings and the advancing inequality they create have brought to America a new term: the Teardown. Tear is a verb with synonyms cut, split, lacerate, rip, sever, cleave, rend, shred or pull apart. In the new United States, the Teardown has become a noun that defines a house about to be demolished and replaced in the same space with another house between four and eight times bigger. In Arlington, Virginia in the 1950’s and 1960’s the Broyhill family built thousands of 1,400 to 1,800 square foot one story rambler and two story colonial homes. They were brick and block three bedroom homes with basements that included necessary plumbing and electricity to finished off, which many families did. In 2003 these homes would sell in the $350,000 range and by 2020 many of them sell for $1,000,000, but they are fast disappearing.

Drive or walk through north Arlington and there will be treeless squares of plowed ground along streets in every neighborhood where the day before there stood a Broyhill rambler, Broyhill colonial or other 1950’s brick and block home. Wealthier neighborhoods have become construction zones with mostly Hispanic crews coming to build 7,500 to 10,000 square foot mansions.  They generally have boxy shapes where the zoning permits an average four-corner height of forty feet. They have finished space in basements and typically three finished above ground floors with six and seven bedroom, six, six and a half baths and two or three car garages. Yard space shrinks but these homes always include elaborate driveways, walkways and landscaping on what space remains.

Some of the builders find a Teardown house for a client and some build for speculation. The replacement mansions sell quickly with little in the way of bargaining and the new owners soon contract with landscaping and housekeeping services to keep houses, lawns and gardens in glorious perfection. Other crews arrive with ladders and lifts to install elaborate holiday lighting or equipment for party events. These “transition” neighborhoods feature a steady stream of UPS, FedEx, and Amazon delivery vans with drivers who scurry up the walkways balancing the days pile of boxes. Lots of cardboard fills recycling tubs.

Arlington County government makes it convenient to study this new trend by graciously putting building and demolition permits in a downloadable text file for importing into an Excel spreadsheet. The files have application and approval dates, project address, and a description of the project along with contractor information. For a file with permit application dates from June 2019 until June 2021 I found 465 records from a filter containing DEMO for demolition and SFD for single family dwelling. Demolition valuations given in the file were typically $10 to $15 thousand.

The buyers of Arlington mansions tend to be empty nest couples moving into their mansions after the kids are gone. No one will ask them if two people need a six or seven bedroom house, it’s impolite and probably embarrassing among the always appearance conscious well to do. No one dares to say these people have too much money, there is no such thing among the well-to-do of the 21st century.

In his 1946 autobiography national journalist and writer William Allen White wrote that the “decade which climaxed in 1912 was a time of tremendous change in our national life[.]  . . . “The people were questioning the way every rich man got his money.” . . . “Some way, into the hearts of the dominant middle class, of this country, had come a sense that their civilization needed recasting, that their government had fallen into the hands of self-seekers, that a new relation should be established between the haves and the have nots[.]” (2)

American politics no longer supports a constructive discussion of inequality and the well-to-do work to avoid and evade discussion of class, they prefer to advertise their class in silence from their mansions. William Allen White would have no trouble informing these new mansion dwellers they got rich and joined the upper class exploiting tax favors not usable by the working class. Mr. White would not regard their conspicuous consumption as a result of work in a meritocracy. No doubt some of them give a can of corn to the Thanksgiving food drive and donate to water conservation and the fair housing fund, but dividend tax breaks debase work and the people who work for a living. They ought to be smart enough to know the dangers of extreme inequality and take some responsibility for the country’s bitter and angry divisions and the peril it brings.

For the first ten years of Bush tax cuts the wealthy paid a rate of 15 percent on dividends instead of 35 percent at the highest marginal tax rate. While President Obama could have attacked the whole idea as an indefensible attack on working families, he did not. Instead he negotiated an increase of the marginal tax on dividends to 20 percent for 2013 taxable incomes over $450,000 while raising the highest tax bracket on taxable income from 35 to 39.6 percent. For my hypothetical couple with $2.5 million of taxable income and $1.5 million of dividend and capital gains, their tax savings dropped from $300,000 to $294,000. Apparently $6,000 of additional taxes on $2.5 million of taxable income passes for Democratic Party liberalism in 2013. 

(1) All dividend shares and values were, and can be, verified on spreadsheets

(2) William Allen White, The Autobiography of William Allen White,  (NY: The MacMillan & Co, 1946), p. 427-429